The Dow Jones fell for the fifth consecutive session yesterday as investors continued to worry about weak corporate profit. Although banks limited losses following a speech in London from Federal Reserve Chairman Ben Bernanke. The S&P 500 and Nasdaq both managed small gains, helped by biotechnology companies, which investors see best equipped to continue earnings growth in the current climate.
The Dow Jones slipped 25.41 points to close at 8,448.56, the S&P 500 added 1.53 points to end at 871.79. The Nasdaq gained 7.67 points to finish at 1,546.46.
Bernanke said that the near $800 billion plan being discussed by the incoming Obama administration and the newly elected Congress "could provide a significant boost to economic activity". He said more steps were needed to stabilise banks, reviving the idea among investors that the authorities may pick up toxic assets from banks books.
On the downside, both General Electric and Boeing fell after analysts downgraded the stocks. Barclays Capital said GE's profit could rely more heavily on tax benefits than the market expects, sending shares 5.6% lower. Boeing declined 2.9% after Credit Suisse downgraded the company citing concerns over problems with Boeing's 787 Dreamliner program.
After the close, Citigroup confirmed it is selling 51% of its Smith Barney unit to Morgan Stanley.
US light crude oil for February delivery slipped $0.19 to close at $37.78 a barrel. COMEX gold for February delivery edged $0.30 lower to $820.70 an ounce. Treasury prices gained marginally, lowering the yield on the 10 year note to 2.29% from 2.3%.
The Nikkei rose 24.54 points to close at 8,438.45 this morning. Higher oil prices lifted energy producers, while shippers advanced on increases in fees for transporting commodities.
The Hang Seng is closed 36.56 points higher at 13,704.61 this morning. Developers went higher following plans by China to boost the property market, while a rebound in oil prices lifted energy producers.
The FTSE 100 is currently 6.23 points lower at 4,392.92. FirstGroup leads the fallers, plunging 9.3%, following disappointing figures. HSBC is down 7.5% after analysts questioned whether the company would need to raise capital via a rights issue this year. Amec tops the risers board after predicting 2008 profit at the top end of forecasts, shares are currently 4.2% higher.